US State Department Suspends Tesla Vehicle Purchase Amid Musk Privilege Controversy

State Department revises procurement plans following conflict of interest claims regarding Elon Musk’s Tesla

The US State Department has decided to halt its plan to purchase electric vehicles from Tesla, following concerns about a potential conflict of interest involving Tesla's CEO, Elon Musk, who also heads a newly established advisory body within the Trump administration called the Department of Government Efficiency (DOGE). This decision comes after reports suggested that the US government was planning to procure up to $400 million worth of Tesla’s electric vehicles, raising questions about preferential treatment for Musk's company.

According to a report by The New York Times, the US State Department's 2025 procurement forecast, released on February 13, included a plan to buy “steel electric vehicles” worth approximately $400 million. While the exact vehicle model was not specified, it is speculated that the Department was considering purchasing Tesla’s electric pickup truck, the Cybertruck, which features a high-strength stainless steel body, making it the most likely candidate for the government’s needs.

Following the publication of the report, there were immediate concerns over a potential conflict of interest, as Musk’s role in the advisory body raised questions about whether it would be appropriate for Tesla to secure a government contract. In response, the US State Department quickly removed any mention of Tesla from its procurement forecast. A newly released version of the procurement document no longer referenced the company by name, instead describing the vehicles as “electric armored trucks.”

In a statement issued on the same day, the US State Department clarified the situation, stating that no contracts had been signed with Tesla or any other car manufacturers for the production of steel electric vehicles for government use. The department explained that funding for the procurement had been put on hold, and there were no current plans to move forward with the purchase. The statement also emphasized that Tesla was the only company to respond to an initial public request for proposals, and that the mention of the company’s name in the earlier document was an error.

Elon Musk also took to social media to downplay the situation, expressing confidence that Tesla would not receive any contracts from the State Department. Responding to the news on social media, Musk wrote, “I’m sure Tesla won’t receive $400 million from the State Department, at least no one has mentioned it to me.”

The controversy surrounding the potential purchase of Tesla vehicles by the US government has sparked broader concerns about the possibility of unnecessary government spending, particularly in light of Musk’s efforts, in his capacity as head of DOGE, to reduce such expenditures. Critics argue that securing a large government contract for Tesla could undermine Musk’s stated goal of eliminating wasteful government spending.

Ultimately, this situation highlights the delicate balance between the interests of government agencies and private companies, as well as the scrutiny faced by high-profile figures like Musk, who operate across both the public and private sectors.